Saddock Wealth provides independent and un-conflicted financial advice for our clients. Our only business is advising your family as a family office. Because we do not sell investments, we are free to focus exclusively on your needs. We work entirely for the benefit of our client families, providing a critical view of investments, assisting in managing finances, and overseeing financial relationships.

Fiduciary Duty

You may have read that in the upcoming financial reforms there is a movement to extend the ‘fiduciary standard of conduct’ or ‘fiduciary duty’ to brokers and insurance companies who ‘advise’ investors. Investment advisors have long been bound to adhere to this fiduciary standard and to abide by the core principles of fiduciary duty:

  • Put the client’s interests ahead of the interests of the advisor
  • Act with prudence; that is, with the skill, care, diligence and good judgment of a professional
  • Do not mislead clients; provide conspicuous, full and fair disclosure of all important facts
  • Avoid conflicts of interest
  • Fully disclose and fairly manage, in the client’s favor, unavoidable conflicts

In addition, registered investment advisors have a duty to seek to control expenses (such as brokerage commissions) on behalf of their clients and must disclose all compensation they receive from all sources in writing, providing their clients a way to understand if there are any conflicts of interest between the advice they are receiving and the interests of the advisor

Brokers, insurance salesmen and a majority of private banks are subject to a lower standard called the “suitability standard.” Under this standard the broker or banker is only required to determine that a security is not “unsuitable. This standard allows the dealer to sell the product that produces the most compensation for themselves, even if it is the most expensive option for the client. Further, while conflicts of interest should be disclosed, the dealer is not required to avoid conflicts or manage them in the client’s best interest. In short, a fiduciary duty provides a comprehensive protection scheme for the client. This duty is not applicable to most bankers, insurance salesmen or brokers, but it does apply to Saddock Wealth. So, you can be assured that we have committed our firm to practicing exclusively in your best interest.